KPM Automotive to shut down after 50 years in taxi trade citing regulatory pressure and rising costs
- Perry Richardson
- Jul 28
- 2 min read
Updated: Jul 29
A long-standing London-based LEVC service agent is closing its doors after more than 50 years in the motor trade. KPM Automotive Ltd, based on Lukin Street, confirmed the decision in a public letter, citing mounting financial and regulatory pressures that have made continued operation unviable.
The announcement marks the end of a journey that began in Brady Street and later moved to Hemming Street, before settling at its current location. The closure is effective from Friday 25 July.
KPM pointed to several factors behind the closure. These included the impact of Transport for London’s enforcement of vehicle age limits and emissions consultations, which have pushed older taxi drivers out of the market and reduced the company’s customer base. The decline in new drivers entering the trade has further affected business.
The firm’s LEVC Authorised Service Agent Agreement is set to expire in 12 months. Coupled with recent news that LEVC has cut 45% of its workforce, KPM said this uncertainty only highlighted how difficult the future trading environment would be.
Additional pressures included a 200% increase in business rates, rising National Insurance contributions, inflation, and significant rent hikes. The firm also cited poor communication from its landlord and conflicting lease terms.
KPM stated that the financial risk involved in continuing operations no longer matched the potential reward.
The company expressed gratitude to its customers and staff, some of whom have been part of the team for decades. A specific mention was given to a long-time employee, Andy, recognised for his near-total service with the firm.
KPM reassured customers with active Auto Group or Evolution Warranties that their coverage remains valid, with further updates to follow.
